Director General Report
Agenda Item 7 COmmissioners’ Meeting Memo No20/12
4OCTOBER 2012
DIRECTOR GENERAL REPORTOCTOBER 2012
CORPORATE AND FORESTRY SUPPORT
Research Commissioning
Two seminars were held at Alice Holt and NRS respectively on 5-6 September to explain the new research commissioning and publications processes. These will help to provide a common understanding of requirements, and help to make information available as quickly as possible.
Stakeholder engagement meetings for the review of the Science and Innovation Strategyhave been held in England, Scotland and Wales. A further meeting is planned for Northern Ireland. These generated a lot of useful ideas for consideration, and will provide a good steer on the priorities for the next strategy, drafting of which will start at the end of September.
Staffing changes - Economists
Jennifer McVey has leftthe FC to take up a post with DECC and her post has been filled by Richard Haw from the end of September.
EU and International Branch
Legally Binding Agreement on forests. The second meeting of the International Negotiating Committee took place in Bonnon 3-7 September (Stephen Lowe, Defra attended). Through intercessional consultations and burden sharing groups EU member states have prepared draft EU positions and statements. This continued in Bonn at on the spot EU Co-ordination meetings. The Presidency (Cyprus/Denmark) issued a revised synoptic table containing draft negotiating positions, tactics and agreed approaches.
Defra Minister for Natural Environment and Fisheries, Richard Benyon MP consulted Devolved Ministers on UK Lines and general policy approaches, namely:
-bringing added value through commitments that can be measured or quantified and that are appropriate to a legally binding text (based on principles previously agreed under Forest Europe) such as commitments to develop National Forest Plans, programmes or legislation.
-curtailing any increase in administrative burden and ensuring reporting obligations do not duplicate existing reporting requirements.
-funding should, in principle, be on a voluntary basis.
EU Forest Strategy. Member States (MS) have provided written comments to the European Commission(EC) on the draft opinion of the Standing Forestry Committee (SFC) contributing to the development of a new strategy and was discussed at the last meeting on 14 September inBrussels.
Natura 2000. The EC has launched a Scoping Document setting out their intention to develop a new Guidance Document on Natura 2000 and Forestry. The Guidance will remain bound by the Provisions of the Birds and Habitats Directives and will not make new rules or legal interpretations of those Directives but will focus on offering best practice and other useful advice on major threats and management requirements. The work will be carried out by a Working Group involving relevant MS authorities and stakeholders. Sallie Bailey will be nominated to participate for the UK.
Forest Reproductive Material (FRM). The SFC meeting of 4 July adopted an Opinion on the Review of Legislation on Marketing of Seed and Plant Propagating Material. We have now received an advanced copy of the EC’s proposed merger of 11 Agricultural Directives and 1 Forestry Directive on FRM. We are currently working through these proposals but initial reactions shared by France suggest that the EC has failed to take full and proper account of the SFC Opinion and concerns remain over the inclusion of the 1 Forestry Directive on FRM (1999/105/EC) in the merger. Formal positions were represented at the Council Working Party on 4th September.
Statistics
National Statistics status for our main statistical releases (Forestry Facts & Figures, Forestry Statistics, Timber Price Indices, UK Wood Production & Trade (provisional figures) and Woodland Area, Planting & Restocking) has now been confirmed, following an assessment by the UK Statistics Authority.
Forestry Statistics 2012 and Forestry Facts & Figures 2012 were published on 27 September, providing the latest statistics on a range of forestry-related topics. New topics to be covered in Forestry Statistics this year are felling licences, statutory plant health notices and the Woodland Carbon Code.
The international returns on economic accounts for forestry and on timber production and trade (Joint Forest Sector Questionnaire and UNECE Timber Committee) were submitted to international organisations in September. The UK market statement for the UNECE Timber Committee will also be submitted in September.
We are continuing to maintain links with Defra on a range of Official Statistics issues.
The Office for National Statistics are consulting on proposed work to account for the value of nature. The work includes a pilot project to develop UK Forestry Resource Accounts. The consultation closed on 30 September.
Economics and Climate change
Woodland Carbon Code. Progress continues with 74 projects now registered of which 19 are validated.
We are currently piloting a group scheme for certification – 5 groups of (5 to 14) projects are working through the validation process as a ‘group’. Learning from experience of the pilot, we hope to open up group certification to all in March 2013.
The Code celebrated its 1stanniversary at the end of July and both the Code and supporting guidance has been updated as a result of our experience over the last year.
The government announced that greenhouse gas emissions reporting will become mandatory for quoted companies (those listed on a stock exchange) from April 2013. This could be extended to all large companies in 2016. It is hoped that this will increase interest in private companies investing in woodland creation as they could demonstrate how carbon sequestered in Code-certified woodlands helped to ‘balance’ their gross emissions. Defra are consulting on the draft regulation on this issue until 17 October 2012.
Markit have beenappointed to develop a Carbon Unit Registry for The Code. Markit are the biggest provider of this service for other global carbon standards. It will add further transparency to the carbon ‘units’ which will accrue in Code-certified woodlands, as well as provide further opportunities for projects to ‘advertise’ their carbon for sale.
Vicky Petterson, an Australian consultant recently moved to London, has written a report for the FC on “Land-use and carbon markets – experience in Australia and lessons for the UK”. The report is intended to inform our thinking about the future opportunities in carbon markets for forestry in the UK. Copies of the report can be obtained from
Pat Snowdon.
We have put out to tender a study to assess the cost-effectiveness of forestry in the UK as a means of abatement of CO2 emissions. The tenders were due in mid-September and the work will be completed by March 2013. Defra, DECC and the Scottish Government will be involved in the study.
We are carrying out an economic appraisal of measures to control Oak Processionary Moth, following recent outbreaks in the London area. This work will be completed in October.
Biodiversity and Environment
Social and Sustainable Forest Management. Scott Wilson’s report on PAWS restoration methods, with a particular emphasis on the retention of timber potential on PAWS sites, is now available as a commissioned research report on the FC web site. The main report is supported by 27 case studies from a variety of woodland types across GB. We will be co-funding another piece of work by Scott Wilson on the current state of continuous cover forestry in GB with the Scottish Forestry Trust (SFT) and FC Scotland. The report and case studies for this work will be available at the end of this financial year.
We are co-funding 4 PhD students with the SFT looking at the susceptibility of Scots and lodgepole pine to Dothistroma needle blight, soil carbon in farm woodland, the benefits of ecological restoration for communities and assessing the timber properties for minor conifer species. A short summary of each project can be found on the SFT web site.
A PhD on the benefits of forests on the mental well-being of people with dementia and depression is about to start at DundeeUniversity. This will look at the impact of forest visits on their mental well being and hopes to identify activities and experiences within the forest setting that are particularly beneficial. This is being co-funded by C&FS, FC Scotland and the Scottish Government.
Publications
A new Strategic Publications Group has been formed to provide a greater strategic steer on the schedule for releasing FC branded publications. The group will aim to determine priorities for publications to ensure that they can be targeted to forthcoming events to ensure maximum publicity for the launches.
Recently published items:
National Forest Inventory Report – 25-year forecast of softwood timber availability
Practice Guide – Managing deadwood in forests and woodlands
Research Report – Understanding the carbon and greenhouse gas balance of UK forests
Research Report – Marginal abatement cost curves for UK forestry
Publications in production:
Practice Guide – Managing open habitats in upland forests
Research Report –Recreational use of forests and disturbance of wildlife
Research Report – Benefits of greenspace
HR UPDATE
Health & Safety
Following on from the Industry Safety Summit in March 2012 a further Industry meeting was held in June in Silvan House. At this meeting the UK Forest Industry Safety Accord was finalised. The FC and many of the large forestry companies and forestry organisations signed the Accord. A Forest Industry Safety Group was also set up at this meeting. Brian Mahony, Director Forest Enterprise (FE)England and Simon Hodge, Chief Executive FE Scotland represent the FC on this Group.
The Forest Industry Safety Group met for the first time at the end of July. As that meeting it was agreed that there should be 8 work streams:
- Communications & promotion
- Behavioural change
- Managing health & safety in forestry
- Industry statistics
- FWM competence development
- Forest haulage protocols
- Electricity protocols
- Chainsaw refresher training
The FC is involved in all of these work steams.
In addition, the FC has invited Dr Tim Marsh to run a workshop on Health and Safety Culture and leadership at the Senior Managers meeting on 26thSeptember. Dr Marsh is the managing director of Ryder-Marsh (Safety) which specialises in behavioural safety and he is considered a world authority on the subject. Building on this, the FC will set up a Health and Safety Task Force to lead on health and safety improvements in the FC.
Voluntary Exit (VE) 2012
26 staff were offered voluntary exit during stage one of the 2012 Voluntary Exit Scheme. Stage two is scheduled for October with only a small amount of exits being required (mainly in FE Scotland)
Senior Staff Group Pay
The Government decided there would be no general increase in senior staff salaries again this year.
Pay 2012
Pay 2012 will be the second year of the two-year pay freeze. Our Pay Remit has received Secretary of State and Scottish ministerial approval but approval from WAG but has not yet been received. It is anticipated that pay negotiations with the Forestry Commission Trade Unions will start in October 2012.
The Civil Service Pay Guidance for 2012/13 has confirmed that all main departments and non-ministerial departments are required to provide three year Reward Strategies to Cabinet Office. The strategy should include plans to move to more local market facing pay structures and also ensure that any pay reforms can be funded within an average 1% increase to paybill. An original deadline of July 2012 for submission has been delayed as the Cabinet Office is unable to provide the local market facing pay data needed to inform the strategy.
HR Reviews
Two reviews have been initiated in HR Services over the last quarter. Following on from our external audit of Data Protection in 2008, a further wide ranging internal review of information security has been initiated. The review aims to further streamline and improve management of personal and sensitive information within the HR Function. Secondly, HR is working with Forest Research on scoping out a review of recruitment across the FC. This will cover all areas of recruitment including policy, process, systems and practice and draws on the negative feedback received on post-filling in the staff survey results.
Equality & Diversity
The FC submitted four nominations to the Civil Service Diversity and Equality Awards 2012. Unfortunately none of our nominations were selected this year. However, the four projects were all excellent examples of how the FC can work towards increasing the diversity of visitors to the FC Estate and help us achieve our Statutory Equality Objectives.
Apprentices
FE Scotland currently has 27 Apprentices and is working towards a target of 30. The FE England Management board recently gave the go ahead to recruit 20 apprentices, with both programmes being supported by a dedicated Learning and Development team.
Learning & Development
A new Learning and Development Strategy is currently being developed.
FINANCE AND INFORMATION SYSTEMS UPDATE
Annual Accounts 2011-12
The FC GB/England Annual Report and Accounts were laid before Parliament on 28 June. The FC Wales accounts were laid on 30 July and FC Scotland’swere laid on 24 August. The deadline for laying of FC GB/England Accounts was brought forward by two weeks compared to 2010-11 and this proved to be a very challenging block of work.
No major issues were raised by the external auditors and allof sets of accounts were unqualified and published in accordance with the set timetables. The key staff involved in the process have been commended for their efforts in achieving this.
Business Planning
The next business planning round for the Shared Services and GB Core covering the final two years of the SR10 period, i.e. 2013-14 and 2014-15 is underway. Heads of Shared Services have updated their proposals to take account of known changes and adjustments for discussion at the September/October meetings with country Directors and Chief Executives.
The ongoing Wales Single Body process will impact on the provision of central services in the future. However, it has been agreed that plans should be prepared on a 'business as usual' basis. This is due to the uncertainty over when services will cease and also the agreement that other customers should not have to bear any additional costs arising from the Wales decision.
Wales Single Body
FAS have been heavily involved in the Wales SB project, assisting them to develop options for delivery of banking, purchase ledger, sales ledger and credit management services from 1 April 2013. We have also started to consider tax issues including VAT, Construction Industry, PAYE Settlements and Forest Holidays. Any additional resources required to assist the project will be met by the Welsh Government under a jointly agreed Memorandum of Understanding.
Financial Systems
We have received de-support notices for both the Employee Expenses Management and Time Recording Systems from our financial systems supplier ABS.We are looking at options for the replacement of these key systems as a matter of urgency and will be working closely with HR, countries and FR to ensure that all the different needs are met.
Information Systems – Disaster Recovery
Thedisaster recovery facility at NRS is now operational with the computing hardware installed and hooked-up. As a result we have already significantly reduced the business risk resulting from fire, flood etc. at Silvan House. Information Services are now undertaking further work to re-configure the IT systems, data networks and operational processes to fully exploit the new facility.
FOREST RESEARCH
Finance & other
FR’s non C&FS income secured to date is £3.3 million which is very promising when our target for the yearis £2.7 million. Of this current total £2.1 million is from non-FC sources.
The former conservancy office at Alice Holt has been demolished and we have been granted planning permission for the Environment Agency (EA) to build their new two storey modular office on the site. We understand that they would like to build this by the end of October in order to have their staff relocated by Christmas. We are working with the EA and the FC England Land agent to finalise the Memorandum of Terms of Occupation. We are also close to finalising the lease arrangements with JCB regarding the Woodlands site.
Initial discussions have been held with staff from EdinburghNapierUniversity about options to co-locate some staff at NRS.
SR10
FR is well ahead of its SR10 implementation plans with staffing levels at 171.9 ftes in July against an end of year target of 169 ftes. 11 staff (8.9 ftes) have accepted terms under the most recent voluntary exit scheme and these reductions plus any replacement posts have yet to be factored in to our overall staffing levels. It is still worth noting that as 30% of FR’s annual income is from non-C&FS sources we will now begin to review and redefine this target on an ongoing basis.
FR’s original SR10 Implementation Plan showed a loss of one PB1 post in 2012/13 as a result of our proposed reorganisation of the current centre structure. Professor Andy Moffat has decided to leave FR under the recent VE scheme in order to pursue other opportunities. Under the terms of the agreed SR10 process, the Appointments Panel has met and agreed to appoint the following PB1 staff to posts under the new proposed structure:
Dr. Chris Quine - Head of the Centre for Ecosystems, Society and Biosecurity
Dr. Helen McKay - Head of the Centre for Sustainable Forestry & Climate Change
Dr. Hugh Williams - Head of the Commercial Services Unit.
Highlights & Scientific achievements
Hugh Evans chaired the IUFRO Alien Invasive Species and International Trade Unit meeting in Japan from 11-16 June. This was a valuable meeting and Hugh gave two joint papers, one on the work of the Unit and the second on “What role can the systems approach play in preventing the introduction of invasive alien species?”. Hugh stood down as Coordinator of the Unit and Kerry Britton from USDA Forest Service took over.
A prototype version of MOSES-GB (FR’s mixed-age and mixed species growth and yield model) is currently being evaluated by selected operational staff in the three countries. Particular interest in this software has been expressed from within Wales.